What is the NYC real estate outlook for 2025? Buyers, sellers, landlords, tenants, and even investors might have this question. The outlook doesn’t look really good for corporate investors since the introduction of good cause eviction does put limits on rent increases, even for market-rate apartments. A few predictions that may define the real estate outlook for 2025 for different stakeholders are:
- Co-ops are likely to make a comeback, and brokers suggest they are better choices for buyers with mortgages.
- Some experts, building on the listing trends seen in the second half of 2024, suggested that fewer sellers are likely to enter the market, even in the peak season (springs). In contrast, slightly lower interest rates might bring more buyers to the market, pushing it in the favor of sellers.
- More rental inventory is expected in Brooklyn, which may give renters in the borough (and the city in general) more options to choose from. This may also come with good deals and discounts.
- The Manhattan luxury market is expected to maintain its strong momentum from last year, with many of the top properties selling for record prices. This is a significant shift from the COVID-19 luxury market.
- More buyers are likely to buy in the city than in surrounding counties/suburbs. This further endorses the outlook that more buyers will enter the market.
Now that rental laws favor tenants more strongly, even in market-rate apartments, it’s also possible that more New Yorkers might continue to rent and wait for a more favorable market to buy. However, a more significant interest rate cut might change this.
While macro elements and trends are worth tracking, you may still find a favorable deal whether you want to buy, sell, or rent. You will need an experienced New York City broker and reasonable expectations for that.
